The innovative technology of blockchain has already conquered the hearts of many people. However, to reach a larger audience, it was necessary to move forward, and the next step was the gaming industry. The combination of the field of decentralized finance (DeFi) and gaming has created a new way by the name of GameFi.
In this article, we are going to give you a general overview of GameFi while explaining how it works in practice, comparing it with traditional games, and talking about its further perspectives. Furthermore, we will provide you with a list of the top 5 play-to-earn (P2E) games that are extremely popular among many people around the globe. But the first thing first - what is GameFi?
GameFi, which refers to Game Finance, is a general term for blockchain projects, like NFT or crypto games, that allow monetizing gameplay. It means users can receive rewards (NFTs or crypto tokens) for their progress within these games.
GameFi Web3 crypto projects operate on a distributed blockchain registry, meaning that all of the user’s objects within the game become the user’s property.
It is worth noting that GameFi does not refer to gambling. Projects in this area of the crypto world assume that the player has a strategy to generate income. Luck is of less importance here than in a casino.
GameFi apps tend to have a few things in common. Avatars, territory, characters, weapons, gold, pets, and other in-game items are represented in the form of NFTs (Non-Fungible Tokens) that prove ownership of these items. Regular players earn these items during their gameplay and can freely trade them on different marketplaces or exchange them for crypto, which, consequently, can be turned into fiat money.
Early GameFi games used the Bitcoin blockchain, but transaction costs and lack of speed led the industry to move to the blockchain on Ethereum with smart contracts.
Developers of crypto games actively used Ethereum, which is still quite popular. However, it has a limited block size, which causes problems related to performance. This flaw was noticed when the incredible popularity of CryptoKitties heavily loaded the Ethereum network in late 2017, causing prices to skyrocket.
Because of Ethereum’s block size limitations, transactions requiring quick confirmation encourage miners to add them before others with higher fees. As demand exceeds the available size, commissions increase dramatically, forcing out other users.
Definitely, it is challenging for every game with high fees for in-game transactions to reach a significant user base. While dealing with this issue, some developers in the field of Web3 gaming have switched from essential Ethereum to faster networks, like Solana, Polkadot, Polygon, Wax, and BSC.
Talking about Web3 crypto projects, they have many levels to complete. Players earn by upgrading characters, renting out land and buildings, fighting in tournaments, or simply doing physical activities in the real world.
All data is stored in a decentralized public blockchain that records each user’s assets. This means that the players own all of the assets, not the developers.
Any game asset purchased is permanently owned by the user, even if the server is down or experiencing technical difficulties. This makes crypto games a source of real income and a pleasant pastime. For some people, these games have replaced a full-time job.
GameFi is shaking up the traditional online gaming industry like any other blockchain trend. GameFi is changing online gaming by combining elements of DeFi, NFT, and blockchain technology.
GameFi projects take many forms, but most popular crypto and NFT games have similar features that distinguish them from traditional online games.
In general, GameFi games use simple game mechanics. This approach lowers the entry threshold, contributing to a significant increase in popularity. Players of all ages and backgrounds will feel comfortable in these projects.
GameFi gamers become permanent owners of their digital assets and NFTs. On the other hand, traditional games can be shut down at any time, causing gamers to lose all their game progress, which is a huge disadvantage. All assets belong to the game developer. Users have no control over the life cycle of the game platform. If the game developer goes bankrupt, gamers can say goodbye to further game development.
GameFi’s Play-to-Earn model is revolutionary. Traditional online games make money through in-app purchases, affiliate programs, and advertising. Players spend money to buy in-game items that give them an advantage over others. Of course, these costs go directly to game developers.
Besides, if you grew up on Minecraft, PlayerUnknown's Battlegrounds, or other online games, you know that in-game currency with no value in the real world is useless. You get nothing in return for your time and effort in the game. Compared to Pay-to-Earn games, Play-to-Earn gives you a shot to get valuable rewards while just playing them. And here are the top 5 most popular P2E games to play in 2022.
Alien Worlds is a decentralized NFT meta-universe where users obtain unique digital items and mine tokens. This game runs on the WAX network, Binance Smart Chain, and Ethereum.
The project is timed to mine the cryptocurrency Trillium (TLM). It is mined on planets and locations with the help of inventory. The coins obtained are spent on improving tools, minions, and weapons. The efficiency of token mining depends on the characteristics of planets, lands, and inventory.
In addition to mining, users fight each other. Weapons are used for this purpose. Minions and artifacts are needed to participate in global battles.
DeFi Kingdoms is a browser-based MMORPG. The gameplay focuses on NFT heroes who can learn professions, gather resources, and participate in quests and PvP battles. The game is based on the Harmony One blockchain, and a Jewel Token (JEWEL) is the cryptocurrency that players can earn during their adventures.
Splinterlands is an online card game reminiscent of Hearthstone and Magic the Gathering. The player must collect cards and use them in PvP battles. In Splinterlands, more than 500 types of NFT cards can be bought, rented, or sold on the marketplace. The Hive blockchain is the place where the game is settled, and Dark Energy Crystals (DEC) represent the main players’ reward.
Axie Infinity is a blockchain-based game centered around virtual pets - Axies. Players can fight in PvP or PvE mode to earn AXS and SLP tokens, which can be used to breed and raise pets and make real money. Each beast is unique and has a set of its strengths and weaknesses, is an NFT token, and belongs to the player. All of these can be freely sold and bought by users within the Axie Infinity ecosystem. The game runs on two popular blockchains - Ethereum and Ronin.
Before, we have touched on the best P2E games that apply different earning mechanics (like battling, collecting, etc.). However, one play-to-earn mobile app combines several mechanics to earn digital assets, and the name of this app is Walken.
It is a lifestyle application related to walk-to-earn games because the easiest way to get digital assets (GEMs and WLKNs) is through physical activity - walking, jogging, and running while leveling up your in-game character (CAThlete). To increase your profit and have more fun, you should also participate in different competitions against other CAThlets.
It is worth indicating that Walken is not just a simple P2E mobile app; it has a noble goal to tie three activities (leading a healthy lifestyle, online gaming, and crypto earning) into one. So, you see how many benefits you get while using this app. The app is available for iOS or Android.
Before you get involved in any blockchain game, make yourself a DYOR. This will allow you to identify fake and fraudulent projects. Also, risk what you can take out. If possible, use a separate cryptocurrency wallet for the project. Once all security measures are in place, you can get to work.
It is the first tool a GameFi player needs. For most games, MetaMask will be the most suitable option. However, the game may specify which wallet to use. In addition, a specific blockchain network may be required to connect.
For example, the BNB smart chain game requires a BSC network. An Ethereum contract game requires an Ethereum network. However, some games create their own wallets. This opportunity lowers the cost and improves performance. You need to know which wallet is compatible.
After creating a crypto wallet, the next step is to connect it to the game. The easiest way to link your existing wallet is by clicking on the Connect Your Wallet button.
As mentioned earlier, games in Web3 gaming have specific requirements, like having a wallet on a particular blockchain or something like this. And it is always better to check this information twice before entering it to avoid an unpleasant gaming experience.
Bear in mind that most P2E games require crypto, and one of the easiest and quickest ways to get the needed tokens is by following this link.
This sphere allows players to withdraw game items (digital assets) from the virtual world to the real world, which enables them to sell these assets on NFT marketplaces, and the earned cryptocurrency - to exchange on cryptocurrency exchanges.
Crypto games work by giving players rewards such as cryptocurrency or digital lands, avatars, weapons, and costumes. Each GameFi project uses its model and unique economy.
The application DeFi, contained in the projects of GameFi, allows players to farm yields, so players can contribute their game tokens in the stacking and get rewards, exclusive items, and access to levels.
If earlier computer games brought gamers only pleasure from the in-game process, in 2022, they are turning into a full-fledged source of income. Most modern games provide for the possibility of purchases within the game universe. It is usually a variety of weapons, equipment, etc. The issue was that such items were not provided with something. They only satisfied the aesthetic pleasure of gamers and were used as decoration. Things are different with GameFi and Web3 gaming (you can read the article, where the concept of Web3 explained in detail). The artifacts bought here serve as a source of income.
Everything goes to the fact that there will be games with more elaborate and developed action, where millions of players will be able to face each other in battle and get crypto for the victory. At the same time, with such games, large virtual markets will be created that will allow players to buy and sell items.
The concept of GameFi is undoubtedly better than existing online games. The Play-to-Earn model is ultimately a pass to wider crypto adoption, as blockchain and NFT games hint at what lies ahead. So it's not surprising that this explosive trend shows no sign of slowing down. At this rate, GameFi and NFT will become a unifying factor for DeFi. With growing public interest and an influx of capital, the prospects for this nascent industry are limitless.
1. What does GameFi stand for?
GameFi stands for Game Finance and means that every game or application related to GameFi allows users to monetize their gaming process and earn digital assets that can consequently be traded among other users within different platforms or chains.
2. How do you make money with GameFi?
If you want to know how to make money with GameFi apps, it is necessary to do one simple but enjoyable thing - to play. While accomplishing different tasks and competing with other players, you will earn digital assets. As a result, you can use all these digital assets for trading with other people and get fiat money.
3. Is GameFi free?
It depends on the chosen game. Some GameFi games or applications do not require any starting investment, while other games obligate players to buy a digital asset, like a character or sneakers, to be able to start playing. Suppose you want to play something for free. In that case, it is highly recommended to consider the lifestyle app Walken, which does not require any investment. You can earn crypto while doing regular physical activity (walking, jogging, or running).
4. What is the best game to earn crypto?
The world of GameFi games is full of various projects that are different from each other. However, it is worth highlighting one play-to-earn mobile application Walken. This app allows users to start earning crypto without investing real money while walking, jogging, or running. To increase the rewards flow, you can compete against other players in different competitions.